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Suppose the price of a five-year zero-coupon note with a cash flow of $100 at the end of five years is 78. The price of
Suppose the price of a five-year zero-coupon note with a cash flow of $100 at the end of five years is 78. The price of a four-year zero coupon with a cash flow of $100 at the end of four years is $83. What is the one-year forward rate in the fifth year (i.e. four years from now)?
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